U.S. SEC Grants Muni Advisors a Temporary, Limited Exemption from Broker-Dealer Registration

On June 16, 2020, the U.S. Securities and Exchange Commission (SEC) granted registered municipal advisors (MAs) a temporary, limited exemption (Exemption) from broker-dealer registration to the extent that they solicit banks and other “Qualified Providers” in “Direct Placements” of securities and receive transaction-based compensation. The Exemption, which is intended to address the financial stresses on municipal issuers caused by the COVID-19 pandemic, is valid through December 31, 2020.

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